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Small group with different year ends

Can we file parent co accounts with a different ARD to the subsidiary as not required to consolidate

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A client formed a parent company 6 months into their year end, as it is the first year we cannot extend the parent year end to match the subsidiary as the period would exceed 18 months by 24 days (!) and we don't wish to the extend the sub as the parent is effectively only a holding company and the sub has the appropriate year end. As it's a small group and consolidated accounts aren't required, is there anything to actually stipulate they must have the same ARD? Obviously intention would be to extend next year so they align if it's possible to file with different year ends this year? Otherwise obvious resolution is to shorten now but wanted to check first if this was necessary?

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By paul.benny
05th Jan 2022 12:03

If you're not preparing consolidated financial statements, there's no requirement to have co-terminous year ends.

In fact, I don't think it's required for consolidated statements - you just have to consolidate a like-for-like period/balance sheet date and it's a lot harder if year ends aren't aligned.

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By johnt27
06th Jan 2022 11:58

You don't need coterminous year ends for consolidated accounts as long as year ends are within 3 months of the parent you can take those results into the consolidated accounts with appropriate disclosure of the differing year ends. Most people go for coterminous for simplicity not necessarily for group reporting purposes but for intra-group tax relief.

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By paul.benny
06th Jan 2022 13:22

Thank you. Couldn't be bothered at the time to look up the exact requirements

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